The Corona Virus had its way with the financial markets over the past week. The flight to safety of capital is going into fixed income (i.e. US treasuries, and mortgage backed securities). Mortgage rates generally mirror the moves of 10 year notes. As you can see visually the rates have dropped substantially since they made their recent highs November 2018, but after a brief few months of stability, have dropped since the first on the year.
The closing today around 1.16% is at all-time lows for the 10 year note. Mortgage Backed Securities have also gotten better, but not quite at all-time lows. That said, it’s an amazing time for low mortgage rates.
Wild cards… Will the virus become a pandemic? How much of an affect will the virus have on the world’s economies? How long will the virus, and its affect on the world’s economies last?
There’s talk about a Fed Funds Rate cut. Not needed based on “today’s” economic numbers, and it won’t help the supply chain issues from China, but it might help the financial markets psychology. We’ll see what transpires. This bug may be an issue for a while. Meanwhile feel free to check with me on how you can take advantage of the low rates… and stay healthy…
If you are in the Los Angeles area, have any questions or real estate sales or financing needs, feel free in contacting me
Ron Henderson GRI, RECS, CIAS
President/Broker
Multi Real Estate Services, Inc.
Gov’t Affairs Chair – California Association of Mortgage Professionals (2017-2018)
Chairman – OutWest Marketing Meeting (Real Estate Education)
BRE #00905793 NMLS #310358
www.mres.com
ronh@mres.com
Specialist in the Art of Real Estate Sales and Finance
Real Estate market, mortgage rates, Los Angeles, San Fernando Valley, Conejo Valley, Simi Valley, Woodland Hills, West Hills, Calabasas, Chatsworth
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